Yahoo Finance Apple’s next big move should be into bitcoin, report suggests
Apple should offer a way for its users to buy and sell cryptocurrency, which would give the technology giant an immediate market share in the technology, a report from RBC Capital Markets states.
The suggestion, as reported by Reuters, suggests that Apple could make it easier for individual buyers to purchase cryptocurrency assets such as Bitcoin, Etherium, and even DogeCoin.
Apple could integrate this directly into its Wallet app on iPhone and iPads, which would make the United States a global leader in cryptocurrency and lessen the possibility of the technology being shut down by governments.
"If the USA owns the most crypto assets (be it Bitcoin or other assets), it would not make logical sense in our view to ban it," the report states.
RBC analysist Mitch Stevens calculates that the payments company Square, which was founded by Twitter CEO Jack Dorsey, generated $1.6 (£1.16) billion per quarter in revenue related to Bitcoin.
Square, however, only has around 30 million users, so should Apple take on this option the company could stand to make even greater profits.
“Apple’s install base is1.5 billion, and even if we assume only 200 million users would transact, this is 6.66x larger than Square,” according to the report, as quoted by Coindesk.
“Therefore, the potential revenue opportunity would be in excess of $40 billion a year (15 per cent incremental top-line opportunity).”
Apple could solve the regulatory and informational challenges of cryptocurrencies if it creates a closed system where it transfers the ownership of cryptocurrencies between customers, the report continues.
While the company does not allow mining for cryptocurrencies using its iPhones, nor letting them be purchased via its Apple Card, cryptocurrency wallets are available for download in the app store.
Cryptocurrencies have seen their popularity increase of late; Bitcoin recently overtook Facebook and Tesla to become the ninth most valuable asset in the world.
Bitcoin's price was boosted by Tesla's announcement that it had invested$1.5 billion in the cryptocurrency and would begin accepting it as payment for its electric vehicles in the future.
Read More
Dogecoin: How did a Shiba Inu meme become the world’s richest man’s favourite cryptocurrency?
